Relief for Depositors as RBI Allows Rs 25,000 Withdrawals from New India Co-op Bank
In a significant relief for depositors, the Reserve Bank of India (RBI) has eased restrictions on New India Co-operative Bank Limited, allowing account holders to withdraw up to ₹25,000 starting February 27, 2025. This decision follows a thorough review of the bank’s liquidity position in consultation with the bank’s administrator
Since February 13, the bank had been placed under the RBI’s All-Inclusive Directions (AID), which prohibited withdrawals from savings, current, or other deposit accounts. However, after discussions with the administrator and a reassessment of the bank’s financial health, the RBI decided to grant partial relief to depositors.
“With this relaxation, more than 50% of the total depositors will be able to withdraw their entire balances, and the remaining depositors can withdraw up to ₹25,000 from their accounts,” stated the RBI in an official release.
Withdrawals can be made through bank branches or ATMs, with the total amount a depositor can withdraw capped at ₹25,000 or the available balance in their account, whichever is lower.
On February 14, the RBI had previously superseded the bank’s board, appointing an administrator and a Committee of Advisors (CoA) to oversee the bank’s operations and address ongoing financial concerns.
This move aims to provide immediate relief to depositors while the RBI and the appointed administrator work to stabilize the bank’s operations. Further updates regarding the bank’s future actions are expected as the situation develops.
Depositors are advised to stay informed through official RBI communications or to contact their nearest New India Co-op Bank branch for further assistance.
